Six quick tips to increase the value of your business:
- Have a written security alarm contract with each customer.
- Use only proper industry standard security alarm contracts.
- Your contracts should include automatic renewal clauses for services, such as central station monitoring, where permitted by your state’s law.
- Offer Service Maintenance Plans to increase your RMR (recurring monthly revenue).
- Keep a close eye on your accounts receivables (accounts more than 90 days overdue are a red flag).
- Control your annual attrition; strive to keep it less than 6% (attrition in this context means the loss of existing customers, without offsetting the loss with newly added customers).
MICHAEL J. REVNESS, ESQ., is the founder of AlarmLegal.com, and a founding partner at the law firm of KURTZ & REVNESS, P.C. Please contact me at firstname.lastname@example.org (or 610-688-2855) if you would like to schedule a full date on-site legal review or if I can be of assistance with the drafting security alarm contracts, purchase or sale of security alarm accounts or other related security industry legal services.
This article is for information purposes only and does not constitute, and should not be relied upon as, legal advice.